Of course, you want to get paid when you provide services or sell products to customers. But what happens if company payments are overdue? Even worse, they could not show up at all! Debt collection in UAE and dealing with clients who haven’t paid bills or invoices require certain actions on your part; however, before we get to that, let’s have a look at what you can do to ensure that your customers pay on time, every time.

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In order to avoid payment defaults, it might be challenging to pursue a client who has not paid, which is why it is preferable to avoid the problem in the first place by implementing the following measures:

Conducting Client Research:

If you have never dealt with a customer before, you should take the time to learn as much as possible about them. You may learn a lot about a potential new customer by doing a simple Google search and by inquiring among your connections about any information they may have. You may also check to discover whether the customer has any complaints filed against them.

Keep in mind that pre-screening clients can avoid the majority of payments from being unpaid. You’ll be able to do your own risk assessments with the use of the information readily available to us online, such as notices of liens, court records, and more. A company’s risk appetite should be reflected in its preparedness for the chance that a customer won’t pay.

Get everything down on paper:

Whether you’re dealing with a personal friend or a well-known business tycoon, a formal contract or agreement is usually a good idea. The following are some of the legal considerations that must be addressed in an agreement:

  • The breakdown of payments (for instance, 40% down, 40% upon reaching a certain milestone, and 20% at finalization).
  • Each party’s preferred means of exchange, such as a credit card, a check, or a direct transfer.
  • Measurement of the size of the undertaking (exact work that is expected to be completed)
  • The cut-off point or anticipated end date
  • Payment terms, including the fee assessed for late or non-consented-to payments

To avoid problems in the future, it is crucial that you collect all relevant information and memorialize it in writing. It’s more likely that you’ll get paid by a client if you give them enough notice of any costs they owe, such as those associated with expenses that are past due. In that case, the customer will be obligated to pay interest. If you can’t get everyone to agree on anything, nothing is fixed in stone.

Get a down payment from the customer:

You will take a financial impact if you need a deposit from the client. Freelancers sometimes request a retainer or payment from their customers at the outset of talks. It can be used to recoup part of the costs or efforts already invested in a project.

How much you should ask for is context-specific. An alternative to paying a retainer that some professionals need is to pay in instalments when the work is completed. You won’t have to worry about putting in a lot of time before getting paid, just to find out later that you won’t get paid anything.

Strategies for communicating with a client who hasn’t paid:

Despite your company’s best efforts, there will always be some customers who fail to make payments. If, despite your best efforts, your clients still don’t pay their bills, you can handle the matter as follows:

Consider the options:

Decide whether or not going after this customer is a good use of time and money. It may be preferable to simply let go and remember this client as a business for the future if the late amounts to a negligible percentage of the company’s profits. The last thing you want to do is waste time and money on an invoice that isn’t going to bring you any profit.

Use the services of a debt collection firm:

Doing so will streamline the process of collecting debts in the United Arab Emirates. Companies with experienced debt collectors, particularly those situated in Dubai and Abu Dhabi, will use phone calls and letters to try to get the money owing to your company from the debtors. When a UAE debt collection agency’s attempts to get in touch with a debtor via their supplied contact information are unsuccessful, the firm may hire private detectives or use sophisticated computer programmes to track down the individual.

You can get help from Sara Advocates and Legal Consultants if you have any client who has unpaid debts or invoices.